In today’s Technical Analysis, we focus on silver, which continues to follow a strong and well-structured uptrend, largely in tandem with gold. The bullish sentiment on precious metals remains intact, and silver is showing a textbook setup for continuation—provided key levels hold.
After a strong rally, silver has now entered a correction phase, forming a wedge pattern marked by black trend lines. This wedge is a common consolidation structure within trending markets and often precedes a breakout in the direction of the prevailing trend.
What’s important now is that silver is resting on two critical supports. The first is the yellow horizontal zone around $33.50, a level that has provided stability in recent weeks. The second is the long-term red uptrend line, which has defined the broader bullish trajectory since the beginning of the year.
As long as the price remains above both supports, the bullish sentiment remains intact. A breakout above the upper black line of the wedge would serve as a strong buy signal, confirming the end of the consolidation and resumption of the uptrend.
On the flip side, a daily close below the yellow support would be a warning sign, potentially triggering a deeper correction. However, chances for that scenario currently appear limited, with buyers consistently defending key levels.